WLK Iron Condor Strategy
WLK (Westlake Corporation), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NYSE.
Westlake Corporation manufactures and supplies petrochemicals, polymers, and building products worldwide. It operates through two segments, Performance and Essential Materials; and Housing and Infrastructure Products. The Performance and Essential Materials segment manufactures and markets polyethylene, styrene monomer, ethylene co-products, PVC, VCM, ethylene dichloride chlor-alkali, and chlorinated derivative products. The Housing and Infrastructure Products segment manufactures and sells residential PVC siding; PVC trim and moldings; roofing applications; decorative stone; windows; PVC decking; PVC films for various inflatables, wallcovering, tape, and roofing applications; polymer composite roof tiles; PVC pipe and fittings; PVC compounds; and various consumer and commercial products such as landscape edging; industrial, home and office matting; marine dock edging; and masonry joint controls. The company offers its products to a range of customers, including chemical processors, plastics fabricators, small construction contractors, municipalities, and supply warehouses for use in various consumer and industrial markets, including residential construction, flexible and rigid packaging, automotive products, healthcare products, water treatment, and coatings, as well as other durable and non-durable goods. The company was formerly known as Westlake Chemical Corporation and changed its name to Westlake Corporation in February 2022.
WLK (Westlake Corporation) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $11.82B, a beta of 0.67 versus the broader market, a 52-week range of 56.33-124.23, average daily share volume of 1.3M, a public-listing history dating back to 2004, approximately 16K full-time employees. These structural characteristics shape how WLK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.67 indicates WLK has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. WLK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on WLK?
An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes.
Current WLK snapshot
As of May 15, 2026, spot at $88.98, ATM IV 50.80%, IV rank 41.09%, expected move 14.56%. The iron condor on WLK below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this iron condor structure on WLK specifically: WLK IV at 50.80% is mid-range versus its 1-year history, so the credit collected on a WLK iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 14.56% (roughly $12.96 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WLK expiries trade a higher absolute premium for lower per-day decay. Position sizing on WLK should anchor to the underlying notional of $88.98 per share and to the trader's directional view on WLK stock.
WLK iron condor setup
The WLK iron condor below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With WLK near $88.98, the first option leg uses a $95.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WLK chain at a 34-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 WLK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $95.00 | $2.98 |
| Buy 1 | Call | $100.00 | $2.05 |
| Sell 1 | Put | $85.00 | $3.90 |
| Buy 1 | Put | $80.00 | $2.18 |
WLK iron condor risk and reward
- Net Premium / Debit
- +$265.00
- Max Profit (per contract)
- $265.00
- Max Loss (per contract)
- -$235.00
- Breakeven(s)
- $82.35, $97.65
- Risk / Reward Ratio
- 1.128
Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit.
WLK iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on WLK. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$235.00 |
| $19.68 | -77.9% | -$235.00 |
| $39.36 | -55.8% | -$235.00 |
| $59.03 | -33.7% | -$235.00 |
| $78.70 | -11.6% | -$235.00 |
| $98.37 | +10.6% | -$72.43 |
| $118.05 | +32.7% | -$235.00 |
| $137.72 | +54.8% | -$235.00 |
| $157.39 | +76.9% | -$235.00 |
| $177.07 | +99.0% | -$235.00 |
When traders use iron condor on WLK
Iron condors on WLK are a delta-neutral premium-collection structure that profits if WLK stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
WLK thesis for this iron condor
The market-implied 1-standard-deviation range for WLK extends from approximately $76.02 on the downside to $101.94 on the upside. A WLK iron condor is a delta-neutral premium-collection structure that pays off when WLK stays inside the inner short strikes through expiration; the wing width should reflect the trader's tolerance for the maximum loss scenario where the underlying breaches an outer strike. Current WLK IV rank near 41.09% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on WLK should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, WLK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WLK-specific events.
WLK iron condor positions are structurally neutral / range-bound; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. WLK positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WLK alongside the broader basket even when WLK-specific fundamentals are unchanged. Short-premium structures like a iron condor on WLK carry tail risk when realized volatility exceeds the implied move; review historical WLK earnings reactions and macro stress periods before sizing. Always rebuild the position from current WLK chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on WLK?
- A iron condor on WLK is the iron condor strategy applied to WLK (stock). The strategy is structurally neutral / range-bound: An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes. With WLK stock trading near $88.98, the strikes shown on this page are snapped to the nearest listed WLK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WLK iron condor max profit and max loss calculated?
- Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit. For the WLK iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 50.80%), the computed maximum profit is $265.00 per contract and the computed maximum loss is -$235.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WLK iron condor?
- The breakeven for the WLK iron condor priced on this page is roughly $82.35 and $97.65 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current WLK market-implied 1-standard-deviation expected move is approximately 14.56%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a iron condor on WLK?
- Iron condors on WLK are a delta-neutral premium-collection structure that profits if WLK stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current WLK implied volatility affect this iron condor?
- WLK ATM IV is at 50.80% with IV rank near 41.09%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.